We examine stock 002460 based on the financial report at per 2017-09-30.
Interest bearing liability is the sum of Short-term Loans, Non-Current Liabilities Due Within One Year, Long-term Loans, Bonds Payable.
Pitfall: inventory growth outpace of operating income
Potential: PnL management indicator. Deals might be finished, just book them in these accounts for near future income release. Check inventory details for confirmation.
Potential: a large increase might indicate potential boost in production. “预付原材料款” instead of “预防设备采购款”.
Pitfall: 大股东挪用公司资金的方式之一:表面上给供应商(审计很难核实)预付货款,实际上付给大股东的关联公司。虚报增存货是另一种方式. MUST compare to peers